CMN170V Final Exam UPDATED ACTUAL Questions and
CORRECT Answers
Definition of innovation recombinations of traits
Definition of traits describe distinguishing characteristics of storage, communication, computation
The two elements of digital innovation are digital traits and the recombination of them
Definition of digital innovation how to build digital processes
Definition of invention new combination in realm of practical and technical possibilities
Definition of innovation new combinations in realm of economic and social possibilities
Differences between innovation and invention invention is a new physical or technical recombination while innovation creates
social value from the invention; not all inventions become innovations
Three characteristics of innovations (1) derived from supply of inventions to satisfy demands, (2) depending on
historical and current contexts, (3) socially constructed to create value from
inventions
Three fundamental uses of information (1) storage - transmission through time, (2) computation - transformation through
space, (3) communication - transmission through space and time
Definition of storage of information transmission through time
Definition of communication of information transmission through time and space
Definition of computation of information transformation through space
List of communication digital traits Death of Distance, Timeless Time, Poly-Directionality, Network Structure, Network
Externalities, Interoperability, Media Richness Selection
Explain Death of Distance digital trait of communication Tech allows us to communicate with anyone anywhere regardless of distance
because bits can travel close to the speed of light. Accelerated by pandemic,
enables shift to videoconferencing, online education, ecommerce, remote work.
Explain Timeless Time digital trait of communication Combination of synchronous and asynchronous digital processes allow us to
negate temporal sequences and communicate in real time (synchronous, such as a
chat) or in different times (asynchronous, such as a forum); Enables economy to
do things at optimal times, work across time zones, etc.
, Explain Poly-Directionality digital trait of communication There are four directions and convergence on bit allows us to do all functions in
one platform - (1) one to one (phone, letter), (2) one to many (printing press,
radio, TV, speech), (3) many to one (election, survey, liking a post), (4) many to
many (notice, board meeting, MOOCs)
Explain Network Structure digital trait of communication Information is bound by the structure of the underlying network and links connect
pieces of data on the worldwide web (not the same as the internet). Space of
flows (Castells) describes conceptualization of space due to the importance of
structure of underlying networks, describing changes from 1970s to 1990s.
Network centrality in Network Structure refers to Who is in the center of the network; there are many ways this can be defined
Explain Network Externalities digital trait of When the value of product to one user depends on how many other users there
communication are. Positive network externalities means more users → increased demand →
increased supply → more value (ex - phone network). Negative network
externalities means less users - demand increases → supply doesn't increase →
less value
Space of Flows comprised of three digital characteristics Death of Distance, Poly-Directionality, Network Structure
Explain Interoperability digital trait of communication Ensuring that all network members or machines can communicate and speak the
same language. To ensure this, SCM, ERP, and CRM firms connect different entities
in the economy by using a star network, which is more efficient than a point to
point network
Why is a star network more efficient than a point to point For the same number of nodes, a star doesn't create as many connections as a
network to ensure interoperability direct network, this is why a star network. Centralized scales linearly, sustainable,
no intermediary step required.
Explain Media Richness Selection digital trait of The medium you use to communicate depends on the complexity of the message.
communication Evaluate medium based on ability to (1) handle multiple cues simultaneously, (2)
facilitate rapid feedback, (3) establish personal focus, (4) use natural language.
Highest media richness is face to face dialogue, lowest media richness is a letter
or email
List of digital storage traits Digital Footprint, N = n, Economies of Scale, Non-Fungibility, Data Fusion,
Exposure Selection, Scalable Modularity
Explain Digital Footprint digital trait Convergence of storage and computation; Examples are Google Location
tracker, ability to find data about people on internet, recordings, education/class
participation data
Explain N = n digital storage trait Concept that the sample is equal to the universe so you don't need to sample
everyone and you can infer. N = totality of observations in universe and n = sample
size. No sampling method can lead to misrepresentations
Explain Economies of Scale digital storage trait Variable/marginal and fixed costs both go into producing a product. In digital
products all costs are fixed because you don't have to pay added marginal costs
to scale up, just copy-paste code.
Examples of Fixed Costs in economies of scale Initial investment, land, equipments, salaries, rent
CORRECT Answers
Definition of innovation recombinations of traits
Definition of traits describe distinguishing characteristics of storage, communication, computation
The two elements of digital innovation are digital traits and the recombination of them
Definition of digital innovation how to build digital processes
Definition of invention new combination in realm of practical and technical possibilities
Definition of innovation new combinations in realm of economic and social possibilities
Differences between innovation and invention invention is a new physical or technical recombination while innovation creates
social value from the invention; not all inventions become innovations
Three characteristics of innovations (1) derived from supply of inventions to satisfy demands, (2) depending on
historical and current contexts, (3) socially constructed to create value from
inventions
Three fundamental uses of information (1) storage - transmission through time, (2) computation - transformation through
space, (3) communication - transmission through space and time
Definition of storage of information transmission through time
Definition of communication of information transmission through time and space
Definition of computation of information transformation through space
List of communication digital traits Death of Distance, Timeless Time, Poly-Directionality, Network Structure, Network
Externalities, Interoperability, Media Richness Selection
Explain Death of Distance digital trait of communication Tech allows us to communicate with anyone anywhere regardless of distance
because bits can travel close to the speed of light. Accelerated by pandemic,
enables shift to videoconferencing, online education, ecommerce, remote work.
Explain Timeless Time digital trait of communication Combination of synchronous and asynchronous digital processes allow us to
negate temporal sequences and communicate in real time (synchronous, such as a
chat) or in different times (asynchronous, such as a forum); Enables economy to
do things at optimal times, work across time zones, etc.
, Explain Poly-Directionality digital trait of communication There are four directions and convergence on bit allows us to do all functions in
one platform - (1) one to one (phone, letter), (2) one to many (printing press,
radio, TV, speech), (3) many to one (election, survey, liking a post), (4) many to
many (notice, board meeting, MOOCs)
Explain Network Structure digital trait of communication Information is bound by the structure of the underlying network and links connect
pieces of data on the worldwide web (not the same as the internet). Space of
flows (Castells) describes conceptualization of space due to the importance of
structure of underlying networks, describing changes from 1970s to 1990s.
Network centrality in Network Structure refers to Who is in the center of the network; there are many ways this can be defined
Explain Network Externalities digital trait of When the value of product to one user depends on how many other users there
communication are. Positive network externalities means more users → increased demand →
increased supply → more value (ex - phone network). Negative network
externalities means less users - demand increases → supply doesn't increase →
less value
Space of Flows comprised of three digital characteristics Death of Distance, Poly-Directionality, Network Structure
Explain Interoperability digital trait of communication Ensuring that all network members or machines can communicate and speak the
same language. To ensure this, SCM, ERP, and CRM firms connect different entities
in the economy by using a star network, which is more efficient than a point to
point network
Why is a star network more efficient than a point to point For the same number of nodes, a star doesn't create as many connections as a
network to ensure interoperability direct network, this is why a star network. Centralized scales linearly, sustainable,
no intermediary step required.
Explain Media Richness Selection digital trait of The medium you use to communicate depends on the complexity of the message.
communication Evaluate medium based on ability to (1) handle multiple cues simultaneously, (2)
facilitate rapid feedback, (3) establish personal focus, (4) use natural language.
Highest media richness is face to face dialogue, lowest media richness is a letter
or email
List of digital storage traits Digital Footprint, N = n, Economies of Scale, Non-Fungibility, Data Fusion,
Exposure Selection, Scalable Modularity
Explain Digital Footprint digital trait Convergence of storage and computation; Examples are Google Location
tracker, ability to find data about people on internet, recordings, education/class
participation data
Explain N = n digital storage trait Concept that the sample is equal to the universe so you don't need to sample
everyone and you can infer. N = totality of observations in universe and n = sample
size. No sampling method can lead to misrepresentations
Explain Economies of Scale digital storage trait Variable/marginal and fixed costs both go into producing a product. In digital
products all costs are fixed because you don't have to pay added marginal costs
to scale up, just copy-paste code.
Examples of Fixed Costs in economies of scale Initial investment, land, equipments, salaries, rent
